VFH vs. XLF
Compare and contrast key facts about Vanguard Financials ETF (VFH) and Financial Select Sector SPDR Fund (XLF).
VFH and XLF are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. VFH is a passively managed fund by Vanguard that tracks the performance of the MSCI US Investable Market Financials 25/50 Index. It was launched on Jan 26, 2004. XLF is a passively managed fund by State Street that tracks the performance of the Financial Select Sector Index. It was launched on Dec 16, 1998. Both VFH and XLF are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: VFH or XLF.
Key characteristics
| VFH | XLF | |
|---|---|---|
| YTD Return | 24.36% | 25.45% |
| 1Y Return | 41.15% | 40.33% |
| 3Y Return (Ann) | 6.68% | 7.26% |
| 5Y Return (Ann) | 11.58% | 11.84% |
| 10Y Return (Ann) | 11.17% | 13.66% |
| Sharpe Ratio | 3.53 | 3.63 |
| Sortino Ratio | 4.61 | 4.75 |
| Omega Ratio | 1.61 | 1.62 |
| Calmar Ratio | 2.67 | 2.73 |
| Martin Ratio | 23.07 | 23.79 |
| Ulcer Index | 2.04% | 1.91% |
| Daily Std Dev | 13.31% | 12.56% |
| Max Drawdown | -78.61% | -82.43% |
| Current Drawdown | -2.47% | -2.06% |
Correlation
The correlation between VFH and XLF is 0.98, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
VFH vs. XLF - Performance Comparison
The year-to-date returns for both investments are quite close, with VFH having a 24.36% return and XLF slightly higher at 25.45%. Over the past 10 years, VFH has underperformed XLF with an annualized return of 11.17%, while XLF has yielded a comparatively higher 13.66% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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VFH vs. XLF - Expense Ratio Comparison
VFH has a 0.10% expense ratio, which is lower than XLF's 0.13% expense ratio. Despite the difference, both funds are considered low-cost compared to the broader market, where average expense ratios usually range from 0.3% to 0.9%.
Risk-Adjusted Performance
VFH vs. XLF - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Financials ETF (VFH) and Financial Select Sector SPDR Fund (XLF). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
Dividends
VFH vs. XLF - Dividend Comparison
VFH's dividend yield for the trailing twelve months is around 1.73%, more than XLF's 1.42% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
VFH Vanguard Financials ETF | 1.73% | 2.08% | 2.31% | 1.87% | 2.21% | 2.17% | 2.30% | 1.53% | 1.63% | 2.00% | 1.85% | 1.82% |
XLF Financial Select Sector SPDR Fund | 1.42% | 1.71% | 2.04% | 1.63% | 2.03% | 1.87% | 2.08% | 1.48% | 1.63% | 2.40% | 1.98% | 1.81% |
Drawdowns
VFH vs. XLF - Drawdown Comparison
The maximum VFH drawdown since its inception was -78.61%, roughly equal to the maximum XLF drawdown of -82.43%. Use the drawdown chart below to compare losses from any high point for VFH and XLF. For additional features, visit the drawdowns tool.
Volatility
VFH vs. XLF - Volatility Comparison
Vanguard Financials ETF (VFH) and Financial Select Sector SPDR Fund (XLF) have volatilities of 4.35% and 4.18%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.